SD Cattlemen’s Association: TTP an economic benefit
On May 18, the U.S. International Trade Commission, or ITC, released its report on the economic benefit of the Trans-Pacific Partnership to the U.S. economy. SDCA believes this report confirms that TPP not only levels the playing field for U.S. beef exports, but also supports U.S. economic growth.
Cattle producers, through NCBA, worked closely with the U.S. Trade Representative to ensure TPP met the highest standards and lowered taxes and trade barriers in all member countries. This report by the International Trade Commission clearly shows that TPP would not only lower taxes on U.S. beef into critical markets like Japan and level the playing field with U.S. competitors, it would also provide a boon to the entire U.S. economy.
According to the report, the TPP agreement would increase annual U.S. Gross Domestic Product by nearly $43 billion dollars and expand U.S. employment by close to 128,000 jobs by 2032 when the agreement is fully implemented. Moreover, the report estimates that ten years after full implementation those benefits would continue to grow, expanding U.S. GDP by $67 billion dollars and employment by 174,000 jobs. For beef specifically, the Commission estimates that overall beef exports would be about $876 million dollars higher once TPP is fully implemented and that it would have a moderate impact on U.S. beef imports.
Cattle producers rely on foreign markets and international trade to grow demand for high quality U.S. beef. In order to compete with other global beef producing nations, we need the level playing field provided through TPP. For example, U.S. producers have already lost more than $140 million dollars in sales into Japan alone since 2015 due to their preferential trade agreement with Australia. The USDA Economic Research Service estimates that without TPP, U.S. exports of beef to Japan will continue to decline by $105 million dollars annually, or about eight percent. The TPP would immediately reduce the tax on U.S. beef and give Japanese consumers a choice in the retail market at competitive prices.
The ITC report clearly indicates TPP will foster U.S. exports, grow U.S. jobs and spur economic growth. We continue to call on Congress to pass this agreement now. Let’s not wait any longer to stimulate the economic growth promised by this report with passage of TPP.
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